Podcast
Questions and Answers
What is the primary concern in the agency issue?
What is the primary concern in the agency issue?
- Short-term focus on investments
- Poor quality acquisitions
- Excessive executive compensation
- Divergence of interests between principals and agents (correct)
What is the goal of corporate governance mechanisms?
What is the goal of corporate governance mechanisms?
- To enable managers to use their expertise while keeping them from acting in their own self-interest (correct)
- To prioritize short-term investments
- To reduce the threat of takeovers
- To minimize executive compensation
What is the primary difference between corporate governance and corporate social responsibility?
What is the primary difference between corporate governance and corporate social responsibility?
- Executive compensation vs. performance pay
- Internal governance mechanisms vs. external governance mechanisms
- Prioritizing shareholders' interests vs. stakeholders' interests (correct)
- Focus on short-term vs. long-term investments
What is an example of an internal governance mechanism?
What is an example of an internal governance mechanism?
What is an example of a means of governance that can discipline managers?
What is an example of a means of governance that can discipline managers?
What is the concept that emphasizes social, environmental, and economic responsibilities?
What is the concept that emphasizes social, environmental, and economic responsibilities?
What is the main argument against CSR according to Milton Friedman?
What is the main argument against CSR according to Milton Friedman?
What is the term for companies that pretend to comply with CSR but do not actually make significant changes?
What is the term for companies that pretend to comply with CSR but do not actually make significant changes?
What is the name of the companies that pursue both social and environmental benefits, in addition to economic benefits?
What is the name of the companies that pursue both social and environmental benefits, in addition to economic benefits?
What is the term for when companies claim their products are 'green' when they are not?
What is the term for when companies claim their products are 'green' when they are not?
What is the problem that arises when companies that are more likely to engage in irresponsible behavior are more likely to engage in CSR?
What is the problem that arises when companies that are more likely to engage in irresponsible behavior are more likely to engage in CSR?
What is the term for the area of CSR that is not confined to a firm's direct operating area, but also includes suppliers and partners?
What is the term for the area of CSR that is not confined to a firm's direct operating area, but also includes suppliers and partners?
